The city of Cottonwood is considering taking on a loan in order to help pay off and refinance debt the city owes on its water system.
The city is looking for around $11.5 million from the Water Infrastructure Finance Authority of Arizona.
WIFA is a state agency that works with municipalities to improve water and sewer systems.
“WIFA makes low interest loans available to local governments for water and wastewater infrastructure improvements. WIFA will also make loans to refinance existing debt if those loans also provide funds to make infrastructure improvements,” according to a report from Rudy Rodriguez, Cottonwood administrative services general manager.
The money would be used to “retire and refinance” around a bit more than $10 million in water system revenue bonds issued in 2004. The bonds raised funds to help the city acquire the Verde Santa Fe, Cordes Lakes and Clemenceau water systems.
The remainder of the money could be used to replace 5,300 feet of current water lines along Mingus Avenue during a planned 2016 construction project.
To read the full story, see the Wednesday, Dec. 24, edition of the Cottonwood Journal Extra.
